FDIC FAQs-Are official checks included in the definition of a “noninterest-bearing transaction account?

Compliance > Deposit Operations > FDIC FAQs on Insurance and Payment of Interest on Demand Deposit Accounts
Q:  Are official checks included in the definition of a “noninterest-bearing transaction
account”?

A:  Official checks issued by IDIs are included in the definition of a noninterest-bearing
transaction account. Official checks, such as cashier’s checks and money orders issued by
IDIs, are “deposits” as defined under the FDI Act (12 U.S.C. § 1831(l)) and related FDIC
regulations. The payee of the official check (the party to whom the check is payable) or, if
applicable, the party to whom the payee has negotiated the official check, is the insured
party. Because official checks meet the definition of a noninterest-bearing transaction
account, the payee (or the party to whom the payee has endorsed the check) would be
insured for the full amount of the check if the issuing IDI were to fail on or prior to
December 31, 2012.

This can be found in - FAQ#9 of FDIC’s FAQs.  FDIC’s FAQs can be found at: http://www.fdic.gov/deposit/deposits/unlimited/faq.pdf

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